representing the recording industry worldwide. market and regulatory outlook in the music industry...
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![Page 1: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/1.jpg)
representing the recording industry
worldwide
![Page 2: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/2.jpg)
Market and regulatory outlook in the music industry
Lauri Rechardt Director Licensing & Litigation
IFPI
![Page 3: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/3.jpg)
What’s digital?
On-line and mobile
Permanent downloads, “rentals”, on-demand streaming, personalised webcasts, master tones, RBTs,
New products: SMS tones, RBTs, etc
No one “killer application”
![Page 4: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/4.jpg)
Demands of digital
• Creating services that are both secure and meet consumer demands requires flexibility in licensing
• Licensing for on-line and mobile needs to be “business driven” not constrained by old structures
![Page 5: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/5.jpg)
Market outlook
2005
• Digital revenue US$ 1.1 billion in 2005, 6 % of industry revenue
• Mobile / on- line; 40 / 60
0
500
1000
1500
2000
2500
2004 2005 2006
Digital sales
![Page 6: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/6.jpg)
Market outlook
• iTunes: over 1 billion tracks sold
• WMG: Digital off-set decline in physical sales, 7 % of company revenue in 2005
• Digital 25 % of revenue in 2010 -- from utopia to realistic projection
![Page 7: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/7.jpg)
Market outlook
Regional break-down in 2005
Total Online Mobile
US US$ 636 68 % 32 %
Japan US$ 278 9 % 91 %
UK US$ 38 62 % 38 %
Germany US$ 31 66 % 34 %
France US$ 28 47 % 53 %
![Page 8: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/8.jpg)
Factors inhibiting growth in EU
• Piracy
• Lack of “secure interoperability” cross services and players
• Absence of Pan-European blanket licenses for authors rights
![Page 9: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/9.jpg)
Regulatory outlook
Interoperability
• Virgin Mega v iTunes
• “French debate” – interoperability through regulation
• Regulatory intervention v market driven solutions
![Page 10: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/10.jpg)
Regulatory outlook
Collective licensing
• The issue: how to organise multi-repertoire, multi-territory licensing in the EU
• Pan-European licenses currently available only from producers’ societies
![Page 11: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/11.jpg)
Regulatory outlook
• Competition law: from “Lucazeau / Tournier” to “Simulcasting” to “Santiago” to “RTL”
• Sets out a framework for effective EU-wide collective licensing for new on-line and mobile uses
– Distinction between licensing of “traditional” uses and “new” Distinction between licensing of “traditional” uses and “new” usesuses
– Based on ability to “monitoring at a distance” Based on ability to “monitoring at a distance” – Introduces competition between the societies, Introduces competition between the societies, – Removes territorial restrictions to the scope of the licenses Removes territorial restrictions to the scope of the licenses – Removes “customer allocation” clauses Removes “customer allocation” clauses – Right to proper remuneration for rights safeguarded! Right to proper remuneration for rights safeguarded!
![Page 12: Representing the recording industry worldwide. Market and regulatory outlook in the music industry Lauri Rechardt Director Licensing & Litigation IFPI](https://reader035.vdocument.in/reader035/viewer/2022072016/56649ee45503460f94bf2702/html5/thumbnails/12.jpg)
Regulatory outlook
• Normative activities: Commission Recommendation on collective cross-border management of copyright and related rights (2005/ 737/ EC)
– Endorses the existing rules on “non-discrimination” Endorses the existing rules on “non-discrimination”
and right holder freedom to split the administration and right holder freedom to split the administration of their rightsof their rights
– Recommends the setting up of dispute settlement Recommends the setting up of dispute settlement bodies bodies
– Outcome – EMI publishing opts out from collective Outcome – EMI publishing opts out from collective licensing? licensing?
– Follow-up? Follow-up?
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Conclusions
• Positive outlook
• Europe is lagging behind
• Key issues: inter-operabiltiy and collective authors’ rights licensing
• Markets best placed to solve inter-operability
• Competition policy and dispute resolution mechanisms key to solve the authors’ rights licensing
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representing the recording industry
worldwide